Hi Tom- XP does them all- no worries. I have two HD's that have FAT32 & NTFS on the same drive, different partitions- it's done all the time. NTFS makes smaller cluster sizes so wastes less & is able to be set up in a more secure fashion than FAT32. In some instances FAT32 is faster, though with more possible waste due to larger cluster size (proportional with partition size). Everything's a toss up - all depends on your needs & uses. You can hook up the drive that you plan to use as the boot drive, drop in the XP disk, & do the partition/format from there. Then when it's done, add the other drive in as slave & partition/format that one from within Windows via the "manage" feature (right-click "my computer", manage, disk management. It's such a breeze now in XP, LT Visit our website regularly for FAQs, articles, how-to's, tech tips and much more http://freepctech.com